A bold call to action from one of the country’s leading economists could signal a game-changer for Alberta’s economy and Canada’s internal trade landscape. A new Economic Note released recently by the Montreal Economic Institute (MEI) outlines how Alberta could spark significant economic growth by adopting a mutual recognition policy similar to the one recently passed in Nova Scotia.
Trevor Tombe
“The growing momentum to eliminate internal barriers to trade in Canada is promising,” said Trevor Tombe, professor of economics at the University of Calgary and senior fellow at the MEI. “If Alberta were to join the growing interprovincial free trade zone started by Nova Scotia, both it and Canada would be much more prosperous.”
Interprovincial trade in Canada continues to be plagued by a complex web of differing regulations, certifications, and testing requirements—commonly known as trade barriers—that add cost, time, and frustration for businesses and consumers alike. These longstanding hurdles could be swiftly dismantled, according to Tombe, through the adoption of mutual recognition legislation.
Nova Scotia took a leadership role on March 26, 2025, when its Free Trade and Mobility Within Canada Act received royal assent. The legislation offers a practical approach: recognize the standards and credentials of other provinces without further testing or fees—provided there’s reciprocity.
“The main benefit of mutual recognition policies is that they bypass the regulatory gridlock that has long plagued interprovincial trade discussions,” Tombe explained. “It’s a trade first, harmonize later approach that allows Canadian consumers and businesses to begin to reap the benefits of these agreements without delay.”
The idea is catching on. Ontario Premier Doug Ford and Prince Edward Island Premier Rob Lantz have already tabled similar bills in their respective provinces, signaling a shift toward the creation of a true internal free trade zone within Canada.
The numbers are striking. According to MEI’s Economic Note, mutual recognition agreements between just Ontario and Nova Scotia could generate a $4.1 billion boost to the national economy. But the stakes are much higher if Alberta steps in.
“If Alberta were to adopt a similar bill to those of Nova Scotia, Ontario and Prince Edward Island, or sign mutual recognition agreements with all Canadian provinces, the country’s economy could grow by an estimated $72.1 billion,” the report notes.
Francois Mutombo
Even an agreement limited to Alberta and British Columbia could yield staggering results, increasing Canada’s GDP by an estimated $25.7 billion.
“(Alberta) Premier Danielle Smith should follow Nova Scotia Premier Tim Houston’s approach and adopt mutual recognition laws with the rest of the country,” urged Tombe. “It’s one of the surest and lowest-cost ways for provincial governments to unleash Canadian productivity growth.”
As provincial governments search for ways to build economic resilience—especially in the wake of past international trade uncertainties—mutual recognition offers a practical, proven, and fast-acting solution. For Alberta, the opportunity may be too big to ignore.
For more, the full MEI Economic Note is available here.
Mario Toneguzzi
Mario Toneguzzi is Managing Editor of Canada’s Entrepreneur. He has more than 40 years of experience as a daily newspaper writer, columnist, and editor. He was named in 2021 and 2024 as one of the top business journalists in the world by PR News. He was also named by RETHINK to its global list of Top Retail Experts 2024 and 2025.
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